Forbearance Agreements: Be Fair, But Don’t Be Foolish
It is no secret that the current COVID-19 pandemic is beginning to impact our Canadian economy. Many businesses have been forced to close their doors temporarily. Many likely fear such closure may prove permanent.
Business owners and independent contractors will face tough decisions in the months to come. Once one decides what to do in any given circumstance, there is the added consideration of how to do it. Hobbs Giroday is here to advise on the ‘how’, with your legal interests in mind.
Like most things in life this too shall pass. It is all the more important then, when making decisions now, to position yourself properly for over the long term.
You may be dealing, for example, with contractors or purchasers unable to pay your invoices in the moment. In light of what is going on in the world, they may be requesting, and you may feel compelled to grant such person, a temporary waiver of interest, or grace period.
Choosing to conduct your business in this manner is perfectly reasonable, especially in a time of crisis. We also get that preserving relationships is paramount. There are, however, legal nuances you should be aware of if you wish to give someone an extension. You do not want to create an argument that you have waived your right to a debt, or foreclosed your ability to take legal action in respect of same. You likely require a forbearance agreement.
We at Hobbs Giroday can help steer you through such conversations and ensure that whatever gratuitous action you may wish, or have to take, can be documented in a manner where you do not forego your own rights down the line. Precise legal language is key if you intend to forbear.
You can protect your reputation and your rights. Let us show you how.
Contact Hobbs Giroday now to discuss your matter and make your tough decision, a little easier.